How Scores Are Calculated

FICO® scores are calculated from a variety of credit data found in credit reports. These data can be grouped into five categories as indicated in the pie chart. The percentages shown in the pie chart represent the importance of each category to determine the score.

These percentages are based on the importance of the five categories for the general population. For certain
groups in particular – for example, people with a recent credit history – the importance of these categories may be somewhat different.

% Breakdown of Credit

Breakdown in Detail

Payment History

  • Payment information for specific types of accounts (credit cards, accounts with commercial
    establishments, term loans, loans with financing companies and mortgage loans, etc.)
  • Negative public information (bankruptcies, judgments, demands, foreclosures,
    retention of salaries, etc.), cases of collection or collection and / or black
    delinquencies (accounts pending)
  • Severity of delay or delinquency (how much delay it has)
  • Amount outstanding on delinquent accounts or cases of recovery (collection)
  • Time elapsed since delinquency, negative public information (if any) or cases of recovery (if any)
  • Number of pending payments recorded
  • Number of accounts paid according to terms

Amounts Owed

  • Amounts owed on accounts
  • Amounts due on specific account types
  • Lack of a specific type of balance, in some cases
  • Number of accounts with outstanding balances
  • Percentage of lines of credit used (proportion of outstanding balances relative to total credit limits on certain types of revolving accounts)
  • Percentage of amount of outstanding debt due (ratio of outstanding balance to original loan amount in certain types of term loans)

Age of Credit History

  • Time elapsed since accounts opened
  • Time elapsed since accounts opened, by specific account type
  • Time elapsed since account activity

New Credit

  • Number of recently opened accounts and the percentage they represent, by account type
  • Number of recent credit inquiries
  • Time elapsed since the most recent accounts were opened, by account type
  • Time elapsed since the credit inquiries
  • Reinstatement of positive credit history after having had difficulty paying in the past

Types of Credit Used

  • Number of (presence, preponderance, and recent information on) different types of accounts (credit
    cards accounts with commercial establishments, term loans, mortgage loans, consumer financing
    accounts, etc.)

Keep in Mind the Following

  • A score takes into account all these categories of information, not just a few.
    There is no single data or single factor that can determine the score alone.
  • The importance of any factor depends on all the information included in the credit report.

For some people, one particular factor may be more important than for others with a different credit history. Also, when you change credit report information, it will also change the importance of the factors that determine your score. Therefore, it is impossible to say exactly what is the importance of a single factor in determining the score, even the importance levels shown here are for the general population and will be different for different credit profiles. The important thing is the combination of information, which varies according to the person and, over time, for a particular person.

  • The FICO® score only examines the credit report information. However, lending institutions examine many things when making a credit decision, for example, your income, how much time you have worked in your current job, and the type of credit you are applying for.
  • The score takes into account the positive information as well as the negative credit report. Late payments will lower the score, but setting or restoring a good compliance habit will improve the score.

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